As the downward trend is weakening, the Ethereum price indicator points towards a bullish outlook.In the past week, Grayscale and Bitwise have both withdrawn their ETH futures ETF requests
- As the downward trend is weakening, the Ethereum price indicator points towards a bullish outlook.
- In the past week, Grayscale and Bitwise have both withdrawn their ETH futures ETF requests.
- The hype of memes has led to Ethereum's average transaction cost reaching a 2023 high of $27.
Ethereum is the birthplace of Decentralized Finance (DeFi), with more use cases than most top-level cryptocurrencies, including Bitcoin. This practicality has not only caused dissatisfaction among users, but also sparked criticism from regulatory agencies, making it difficult for Ethereum prices to recover. However, this time the situation is not the same.
Ethereum use cases may slow down
After Ripple and XRP, Ethereum has always been a focus of regulatory attention. Although the Securities and Exchange Commission (SEC) claims that anything other than Bitcoin is a security, its chairman, Gary Gensler, claimed in a video from a speech at MIT that Ethereum is not a security.
This has left a huge regulatory loophole in the field, keeping investors cautious.
In addition, earlier on May 17th, Grayscale and Bitwise both withdrew from their plans to issue ETH Futures Exchange Traded Funds (ETFs). Although Grayscale did not provide a reason for this move, Bitwise stated in its withdrawal application that,
According to the revised effective registration statement for the trust mentioned above, the trust no longer intends to seek the validity of the fund and has not sold or will sell the securities of the fund.
In addition, the comments from the US Securities and Exchange Commission regarding the regulatory framework that may take several years to develop have raised concerns among retail and institutional investors. This is because regulatory agencies have stated that they will continue to follow their "law enforcement and supervision" policies.
This makes ETH the most susceptible to suspicion as it appears in the market as the birthplace of DeFi. Kraken's pledge service was shut down earlier this year, especially due to the recent crackdown on pledges by the US Securities and Exchange Commission, which is the main consensus method adopted by Ethereum blockchain.
In addition, PEPE makes it more difficult for Ethereum to attract investors, as meme coin speculation drives average transaction costs above $20. This is a few days after the cost was pushed up to a 2023 high of nearly $27.
Ethereum average transaction cost
All of these situations may seem to have a bearish impact on Ethereum prices, but in reality they will not.
Ethereum prices maintain focus on targets
Due to the slight improvement in the overall market situation after the horizontal consolidation, Ethereum prices still show signs of bullishness. This price trend usually indicates an upcoming rebound, which will serve as a recovery for ETH.
This makes $2000 the next target for Ethereum prices. This is because this price level is not only an important psychological level, but also coincides with the 50% Fibonacci pullback line of $2120 to $1795.
At present, although the parabolic turn indicator above the candlestick indicates an active downward trend, an average direction index (ADX) below 20.0 indicates that bears have little power.
However, if the counterfeit currency does decline due to overly bearish environmental factors, it will still not push the Ethereum price below $1699, as it overlaps with the 200 day moving average, making it a key support level.
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